Understanding the Root Causes of NERC Regulatory Compliance Violations

Description

NERC reliability standards are the backbone of grid stability in North America, but violations continue to challenge operational integrity and financial sustainability for energy providers. This white paper investigates the core organizational weaknesses behind these violations, starting with the role of corporate culture, and explores how systemic gaps—from internal misalignments to procedural oversights—translate into regulatory failures. With recent penalties exceeding $60 million, the findings carry important implications for utility executives, compliance officers, and investors seeking risk-aware operational models.